Wasps facing relegation

[Raggs]

Is it the RFU or the PRL that would make the decision on whether it's relegation time?

[Neils]

https://www.coventrytelegraph.net/sport/rugby/wasps-confirm-intention-appoint-administrators-25076837

[wasps]

https://www.coventrytelegraph.net/sport/rugby/wasps-confirm-intention-appoint-administrators-25076837

It's the hope that kills you

[jamestaylor002]

Maybe NWW or someone with better understanding of all of this can help me understand.

I appreciate I'm probably trying to find some positives in this but does this only happen when a business is well and truly done for? Or are there benefits to doing this?

[Wombles]

I am with Jamestaylor on this. In business is this an acceptable practice, or are we kicking the can down the road?

[wasps]

It would seem that the idea is that issuing notice buys us 14 days to secure a buy out or funding etc.
It sounds like we can maybe get an extra 14 days at the end of it too.


So basically we trying to put everyone else on hold for a couple more weeks in the hope that whatever super deal we're organising gets finalised

[baldpaul101]

that statement sounds quite positive but we've heard loads of positive things over the last few years & the last few months, none of which have turned out to be true. I hope there's a solution out there but we can't keep being told there's light at the end of the tunnel when the tunnel never seems to end.
stop telling us there's a solution just around the corner & actually deliver it!

[wasps]

that statement sounds quite positive but we've heard loads of positive things over the last few years & the last few months, none of which have turned out to be true. I hope there's a solution out there but we can't keep being told there's light at the end of the tunnel when the tunnel never seems to end.
stop telling us there's a solution just around the corner & actually deliver it!

Yep, exactly this.


Everyone knows it ain't easy.
We all knew from day 1 that it was a big plan, maybe too big. We went along with it because there wasn't a lot of options and it could have been great if it worked out.


Things have been tough. Almost certainly made worse by a pandemic.


I still want to blame Saracens for stealing success / prizes from other clubs.


But regardless of all of that, maybe the game had already expanded beyond its means and it's now biting back

[jamestaylor002]

that statement sounds quite positive but we've heard loads of positive things over the last few years & the last few months, none of which have turned out to be true. I hope there's a solution out there but we can't keep being told there's light at the end of the tunnel when the tunnel never seems to end.
stop telling us there's a solution just around the corner & actually deliver it!

Yes, I feel the same way. I just want this to end and it's disheartening hearing this news when we've heard such good statements from Lol and Derek.

[NellyWellyWaspy]

Maybe NWW or someone with better understanding of all of this can help me understand.

I appreciate I'm probably trying to find some positives in this but does this only happen when a business is well and truly done for? Or are there benefits to doing this?

Yes. It stops creditors from taking any action against you, but, at the end of the two week period, either you have sorted out the solvency of the business, or an administrator is by default appointed. In return, the directors have to guarantee that they do nothing to further worsen the position of creditors. In other words, anything you buy in this period MUST be paid for, and not out of funds in hand as of today.

When I used to get involved in this sort of thing, most creditors insisted on payment with order, utilities took meter readings, new accounts would be created, old accounts locked. This process can only be used if you can convince the Court that it is highly likely a resolution will be found within the period. In other words, it must appear to the Court that there is little likelihood of an administrator actually being appointed.

In America, which gets a lot of press as this route is most often used, they call it Chapter 11 Bankruptcy, but over there it can last for years. A lot of big businesses, like car makers and airlines, have used this method to gain some breathing space. A new owner, or incoming finance source must be really close. To me, I cannot understand why any institution would want to 'invest in' or loan money to Wasps. It would make no financial sense to their shareholders. Thus, more likely a new owner. One with more money than sense, or a sense of deep desire to keep Wasps afloat, one that was not around last time this happened, way back then.

Note that we do not play at home until well after this mess is sorted one way or the other. But, our tenants have one game in the 14 days, on 1 October, so that might be an artificial deadline to meet.

I am not sure if anything else, like concerts, events, netball or womens rugby are on in the interim.

[InBetweenWasp]

So it appears to be a defensive move, due to the threat from HMRC and not Bondholders or other creditors.

HMRC were also the catalyst for Warriors, right?

It’s a statement that tells us something and nothing. 

For example, does interested parties mean to lend, or to buy and if the latter, is it buy outright or to invest and take a share?

[BrackenandMacken]

Maybe NWW or someone with better understanding of all of this can help me understand.

I appreciate I'm probably trying to find some positives in this but does this only happen when a business is well and truly done for? Or are there benefits to doing this?

Wasps are insolvent, we can't pay our debts as and when they fall due. This has been known for some time.

By filing an intent to appoint the administrator we are saying "We are looking for a solution, however if in the period of 14 days we can't find this, we will be going into administration". We are buying time, why wouldn't we? But this feels very much the last roll of the dice in the hope someone call pull a rabbit out of a hat.

If we do go into administration they will be acting in the interest of the creditors and looking to regain as much value as possible. They will have complete control. I think as soon as we go into administration that will be the end of Wasps at the Ricoh, the one asset we have will be sold to repay the creditors and there is no way we would lease the stadium to rattle around in it like we do currently, especially if Premier Rugby relegate us.

Then, anyones guess, look to merge with Cov? Worcester? Back to London? Cease to exist? All would be possible outcomes but I reckon as soon as we go into administration we won't see the likes of Willis x2, Atkinson, Barbeary, Launch etc in a Wasps shirt again.

One thing however is blinding obvious,  the market for professional rugby in this country in it's current state isn't as big as the players salaries would suggest.

[wasps]

One thing however is blinding obvious,  the market for professional rugby in this country in it's current state isn't as big as the players salaries would suggest.

That's the key for me.
Although the salary cap has been reduced recently, it has followed numerous significant salary increases year on year, without significant rewards going back to the clubs to pay for it.


I can't see anyone getting any return on investment... Not just with Wasps, but with any rugby club.


So, even if a white knight does come along, the business model remains the same.

[andermt]

Saw this on a Facebook group, not sure how true it is.

This is the email message sent to Staff and players, earlier today:

This morning, HMRC made a decision to give their intention to issue a winding-up order against the club for outstanding monies owed.

'Due to this, the board have taken the decision to enter a Notice of Intention to Appoint an Administrator (NOI).

‘This is not the same as entering into administration, but it is a method by which the club and business can continue to trade whilst it finalises its negotiations with regards to the refinance package which the board have been working on.

A message was sent out to staff and players attempting to ease their concerns on the situation

‘Clearly this is an unsettling time for all involved, however, at this present moment in time there is no change to daily operations and we have been informed that there is no reason why salaries due next week should not be paid as expected.

‘What this process will do is protect the business in the short-term, to give it an opportunity to complete the refinance process.

'We have arranged for our restructuring partner, FRP, together with board members, to be available at the training ground in person tomorrow to answer any questions directly.’

There are bound to be plenty of questions. Early in the month, Wasps released a statement which claimed that the club had ‘received an offer which would see the bonds fully redeemed on completion of this refinancing’.

It suggested that talks with the lender were at ‘an advanced stage’, but there has been no definitive break-through.

[Bloke in North Dorset]

I am with Jamestaylor on this. In business is this an acceptable practice, or are we kicking the can down the road?

AIUI, not only is acceptable practice from what we understand it is prudent and best practice.